Netflix Moves to Lower Actor Fees vs. Disney Teams Up With TVING

Will the OTT market's flow begin to shift? As Netflix adjusts the pay of top actors, Disney is strengthening its foothold in Korea by partnering with TVING and Wavve. With Disney forming a kind of 'alliance front' to stand against the dominant Netflix, industry watchers are paying close attention to how the strategies of these two global platforms may reshape the domestic OTT ecosystem.

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According to industry sources, Netflix has recently capped per-episode appearance fees at around 300 million KRW (~US$200,000), starting with its latest contracts. Just a few years ago, reports suggested that top actors were earning between 500 million (~US$340,000) and 800 million KRW (~US$540,000) per episode. Many see Netflix's move as the introduction of an effective ceiling on talent fees to control spiraling costs.

The reason behind Netflix's shift is simple: skyrocketing appearance fees have inflated production budgets and distorted the market structure. After global OTT platforms entered Korea, the average production cost for Korean dramas jumped from 300–400 million KRW (~US$200,000~US$270,000) per episode to the 2 billion KRW (~US$1,350,000) range. In particular, actor fees commonly account for more than half of total production costs.

As a result, mid-sized and smaller production companies, as well as domestic OTT platforms, have seen a steep decline in the number of projects they can produce. The number of Korean dramas produced dropped from 141 titles in 2022 to an expected around 80 this year. With Netflix adjusting actor fees to the 300 million KRW range, many expect this will curb the so-called "star casting race".

Meanwhile, Disney+ has chosen the path of forming an OTT alliance. Disney Korea and TVING recently introduced a bundled subscription plan that allows users to access Disney+, TVING, and Wavve together. The bundle is reportedly up to 37% cheaper than subscribing to each service individually. Disney Korea CEO Kim So-yeon expressed optimism, saying, "This partnership will be a game changer that reshapes the Korean streaming market".

Currently, the domestic OTT market shares stand at: Netflix 41%, Coupang Play 22%, TVING 17%, Wavve 7%, and Disney+ 6%. With Disney using its new partnership with TVING and Wavve as a springboard to strengthen its K-content strategy, many believe the market-share landscape could shift in 2025–2026. At the same time, Netflix's focus on cost efficiency is drawing attention to how it may further influence the industry.